Bank of Korea to Launch Virtual Asset Team Amid Stablecoin Push

South Korea’s central bank is forming a dedicated virtual asset team to strengthen its oversight of the rapidly growing cryptocurrency sector, according to a report by local outlet News1. The team will focus on monitoring digital asset markets, developing crypto-specific legislation, and examining the role of Korean won-denominated stablecoins. Stablecoins, digital tokens pegged to fiat currencies or other assets, have become a central topic in South Korea’s push to modernize its financial infrastructure.

This move comes as the administration of President Lee Jae-myung, widely regarded as crypto-friendly, advances its digital asset policies. Lee, who took office in June, has advocated for the development of won-based stablecoins to prevent capital outflow and retain national wealth. His stance reflects broader efforts to position South Korea as a leader in blockchain and digital finance innovation.

The Bank of Korea’s initiative builds on the Virtual Asset User Protection Act, enacted in 2023, which defined digital assets and introduced penalties for market manipulation and unfair transactions. The law marked a significant step toward regulating the country’s crypto industry but left open questions on stablecoin frameworks and integration with traditional finance.

South Korea’s evolving regulatory landscape aligns with global trends where central banks are exploring digital currencies and stablecoins to enhance payment systems. Market participants are closely watching how the Bank of Korea’s new team will shape future policy, especially as the country seeks to balance innovation with investor protection. The central bank has not yet provided further comment on the scope or timeline of the team’s activities.

This development underscores South Korea’s growing focus on digital assets and signals potential changes to how stablecoins and cryptocurrencies will be regulated in the coming years.